Assessment of Legal Compliance by Credit Institutions with State Capital Investment

Accordingly, the assessment of the legal compliance status of credit institutions is stipulated in Circular 12 as follows:

- A credit institution is classified as Type A when:

- It is not reminded in writing by the owner's representative agency/financial agency, or is reminded once in writing about submitting monitoring reports, credit institution classification reports, financial statements, and other reports for financial monitoring non-conformably or late for one type of report.- It is not administratively sanctioned by a competent authority for violating policies. In case of administrative sanctions, no more than 5% of the branches (including the headquarters) of the credit institution are administratively sanctioned by warning or by monetary fines, and the fine amount per violation does not exceed 70,000,000 VND.

- A credit institution is classified as Type C when it violates one of the following cases:

- It does not submit monitoring reports, enterprise classification reports, financial statements, and other reports for financial monitoring according to regulations or submits non-conformable reports, on time that are reminded in writing by the owner's representative agency/financial agency from the third time onward for one type of report.- It is administratively sanctioned by a competent authority with a monetary fine, and the fine amount per violation exceeds 100,000,000 VND.- Its managing executives commit legal violations during the performance of their duties to the extent that they are prosecuted for criminal responsibility.

Note that credit institutions classified as Type B are those that do not fall under Type A or Type C.

For full details, see Circular 12/2018/TT-BTC, which takes effect from March 19, 2018.

- Thao Uyen -

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